Indian IPO Market To Pick Up Pace In Coming Months

by Vinaya HS on July 29, 2017

in Finance

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The share market news confirms the increased momentum in IPO activities in our country along with the other markets in the coming months. The reasons cited are strengthening of investor sentiment, reduction of bureaucratic red tape , rationalization of taxes, upbeat economic sentiment, improved business confidence, and waning of political ambiguity in the EMEA or Europe, Middle East, India & Africa markets due to the confirmed elections in UK and Europe.

Initial public offering activities have been at their best in the initial two quarters of this year which is expected to grow even more in the remaining two quarters. The second quarter experienced some political ambiguities. In spite of those uncertainties, the IPO activities in EMEIA have increased which has already made EMEIA the second most active IPO market all across the world. Share market news suggests that the favorable capital markets and a long list of companies looking to go public will keep the IPO gig going this year.

The IPO activity in this year has picked up so well that the data confirms that as many as 772 IPOs were raised that were found a worth of 83 bn. US dollars. The data further drill down that the highest three performing sectors were Technology, Industries, and Health care. During the second quarter or Q2’17 (Apr-Jun) the technology sector raised 13 IPOs worth USD 1.5 bn., the industrial sector raised 12 IPOs worth USD 3.2 bn. and the health care sector closely followed with raising 11 IPOs worth USD 2.3 bn. Other few sectors that are in the performing list are Financials, Insurance, Telecommunications, Consumer Products and Services etc.

Share market live also reveals that as far as Indian market is concerned, the IPO activity has been aggressive in BSE and NSE and it contributed hugely through their SME markets to EMEIA. In Q1 and Q2, the Bombay stock exchange and National stock exchange registered raising 57 IPOs worth USD 2.3 bn. BSE and NSE are now the fastest growing stock exchanges in the world. This has also made BSE the first Indian exchange to be listed and Housing and Urban Development Corporation was adjudged as the most popular IPOs in more than last 10 years. BSE and NSE are further hoping to come out even stronger as they expect the government to raise around USD 3 bn through state-owned enterprise or SOE who have completed their IPO listings to become public companies soon in Q3 and Q4.

The aggressive IPOs activities point to a better market sentiment and a healthy governance and government policy. Year 2016 had also recorded a block buster year for IPO activities when IPO record was set at a six-year high. The momentum in IPO activities this year will be continued to be boosted after the rationalization of the country’s tax regime by GST Bill, which will make India an efficient tax market. This will have a positive long-lasting impact on the Indian economy and strengthening FDI instances in the country.

For more on Business News, visit BloombergQuint.




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